HCC profit up 56%; to float Rs 2,000-cr Lavasa Corp IPO

Written by fe Bureau | Mumbai | Updated: Aug 1 2010, 05:18am hrs
Hindustan Construction Company (HCC) on Friday announced 55.64% growth in its net profit to Rs 28.31 crore for the first quarter ended June 30, 2010, from Rs 18.19 crore in the corresponding quarter last year.

Turnover of the company registered a turnover of Rs 1,008.22 crore, up 5% from Rs 964.09 crore recorded in the year ago period. HCC's EBITDA during the period stood at Rs 122.83 crore, up 12.4% against Rs 111.51 crore in the previous year.

HCC's shares on Friday were up 3.80% to close at Rs 133.70 on the Bombay Stock Exchange.

Alongside, the company announced that its subsidiary, Lavasa Corporation, will be entering the capital markets with an initial public offering (IPO) of Rs 2,000 crore. The board of directors of the company has decided to offer 1:1 bonus shares to its shareholders.

Ajit Gulabchand, chairman & managing director, HCC, said, Lavasas IPO will unlock its true value, thereby enabling HCC to be one step closer in realising its vision of creating a hill city development in India which offers infrastructure better than that available in an average Indian city. This bonus is a show of gratitude to our shareholders who have shared this journey with HCC, he said in a statement.

Lavasa has already started operations in its first township that is expected to be substantially functional by December 2011. It has also started work on its second township and has advanced plans for the next phase, the company said. The firm, which won contracts worth nearly Rs 1,600 crore in the June quarter, has an total order book of Rs 19,346 crore as of now, it added.

Lavasas revenues during the quarter grew 94% to Rs 181 crore, with net profit at Rs 49 crore, up by 87% during the April June 2010 quarter, the company informed.